why should investors know the difference between nominal and real interest rates?\no to know what they are…

why should investors know the difference between nominal and real interest rates?\no to know what they are likely to lose\no to understand changes in monetary policy\no to guarantee an investments profitability\no to recognize the effects of inflation

why should investors know the difference between nominal and real interest rates?\no to know what they are likely to lose\no to understand changes in monetary policy\no to guarantee an investments profitability\no to recognize the effects of inflation

Answer

Answer:

D. to recognize the effects of inflation

Brief Explanations:

Nominal interest rate doesn't account for inflation while real interest rate does. Understanding the difference helps investors recognize inflation's impact on returns.